• Geologic Foundation & Soils
• Climate & Airshed
• Natural Cycles
• Biodiversity

• Brief History of the People
• Town Profiles

• Waterways & Water Usage
• Recreation
• Water Quality

• Ownership
• Our Bounty

• Steering Committee
• Content Contributors
• Educators' Guide
• Creative Team

• Economics
  • Engines of Growth
  • Precious Assets
  • Intrinsic Value
  • The Future

Northwest Regional Resource Conservation and Development, Susan J. Sutherland

Intrinsic Value

Figure 7.7: Money. Source: Todd Berget

It is easy to look around the Flathead Watershed and conclude that what we have is priceless. However, it is equally difficult to quantify the economic value associated with our natural environment. Yet, our resource managers struggle to incorporate that value into their decision-making and management processes. From a scientific perspective, there are a growing set of disciplines to evaluate the best use of an area as well as the potential impact of certain human activities. But how much are those uses worth and at what cost are those activities? For example, how much are our aquifers worth for providing the crystal clear, relatively pure water we enjoy? What would be the cost of losing that function?

Economists have developed several ways to look at the value of ecosystems. There are direct uses: the value we get from using part of the environment, such as water, timber, fish, pasture, and medicinal and subsistence plants used by tribes; indirect uses: the value produced by ecosystems (often referred to as ecosystem services) such as water storage provided by aquifers, filtration and nutrient cycling provided by wetlands, and soil stabilization provided by plants; and optional values such as agriculture and recreation. Other values that encompass culture, heritage, and aesthetics fall into various categories depending on the cultural and economic viewpoint. The methodologies for determining these values remain somewhat complex.

Economists have also been working on understanding and assigning costs associated with environmental effects. For example, there is a definable economic benefit to companies extracting resources at a headwaters location, but the economic impacts from the environmental destruction that would result downstream are more difficult to calculate. While several methodologies have been studied and proposed, resource managers today lack a widely accepted set of tools, processes and criteria for decision-making based on economic value. 

Community leaders and resource managers have become increasingly aware of the long-term impacts of human development activities on the health of the watershed. It is critical for these leaders to provide citizens with clear and consistent analysis of costs and benefits, and processes to evaluate activities as they plan for their future. It is equally important for citizens to make the effort to understand the long term environmental and economic impacts of the natural resource management decisions they support or oppose.  Clearly, communities and their land managers must work closely together to sustain and enhance the heart of our economic vitality.  Not only does it feel right, but it makes financial sense to invest in and protect our natural assets.

Research interviews conducted with residents of the watershed strongly favor protection of our natural resources as they see these resources as beneficial to their own quality of life and the economic health of their businesses. Research also shows that people living in the Flathead—as throughout the state of Montana—tend to participate to a great extent in their natural environment. More Montana residents hunt than in any other state except Alaska, almost six times the national average. Nearly triple the amount of residents here fish than anywhere else in the U.S. 

The Future
Planning for future growth is critical to maintaining our quality of life and protecting our natural resources.  Responsible growth can preserve the character of our diverse communities and maintain our assets for a sustainable future.  By investing in our physical and service infrastructures, fostering business growth, improving our educational systems, and maintaining the health of our environment, we strive to insure our ability to support growth as more people decide this is where they want to live and work. However, citizens—working with their elected officials—should consider the consequences of continued growth and explore potential limitations.

Our growth policies are typically directed at creating new jobs, improving business infrastructures, developing zoning strategies for responsible land development, and enticing new businesses and entrepreneurs to relocate to the Flathead Watershed.  New residents bring more jobs, income, tax revenue, and fresh ideas to our communities, building on those underlying infrastructure investments. As the economy of the Flathead Watershed continues to change, it will be important to focus our attention on promoting qualitative growth that continuously improves the well-being of our citizens while protecting the health of our parks, and our public and private lands.

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